Golden logistics for all that glitters
The Austrian luxury goods firm Swarovski runs around 3,000 shops worldwide. Before its crystal figurines and jewellery reach clients, however, they have to pass through a logistics centre in Triesen (Liechtenstein).
Swarovski is Austria’s seventh-largest employer as well as its only luxury goods firm of note, making it a poster firm of the economy. It has a well-refined logistics system in place, to ensure that its glittering crystals make their way undamaged to the firm’s 3,000 shops located in 142 countries.
More than 1 million consignments a year
Swarovski’s headquarters are in Wattens, in Tyrol, but its logistics heart beats in Triesen, in the Principality of Liechtenstein, where the supply chain management division of Swarovski’s consumer goods business unit is located. Its logistics services unit manages global logistics needs, looking after the necessary warehousing and transport infrastructure. More than 1 million consignments leave the distribution centre every year.
Well-designed packaging
Swarovski’s logistics services vice-president Sven Herrmann explained recently that “Triesen is the central logistics processing hub in the Swarovski group’s consumer goods delivery network. Besides storing the goods there, picking and packing them and organising their transport we also look after additional services there, such as repairs and tailor-made packaging solutions.”
The latter represent a major challenge for the filigree crystals and jewellery that constitute Swarovski’s main products. On the one hand the packaging has to be optically pleasing, but of course it also has to perform its key task of protecting the valuable cargo whilst it is in transit. “Under certain circumstances the delivery might be handled by several modes of transport before it reaches the consumer. On top of that, the delicate packaging has to continue to look good after the picking and packing process too,” Herrmann adds. Swarovski deploys road, maritime and air transport solutions, depending on the destination. On the last mile parcel service providers are frequently used. The company has not looked into rail transportation yet.
Continuously renewing processes
The Triesen logistics centre, part of the backbone of Swarovski’s logistics activities, is linked to facilities in Asia and the USA. The Austrian firm continuously invests in its infrastructure. There may be 480 employees in Triesen, but the centre boasts a high degree of automation. “We always question our technology and continuously seek to improve it,” says Herrmann. The company’s warehouse management system was completely renewed over two years, without any operational disruption. Further logistics investments are in the pipeline. Those already made are paying off – the company was able to increase its sales by 3.8% to approximately EUR 3.5 billion in 2017.